Section 266 | Exemption of non-cash vouchers for exempt benefits F1
From legislation.gov.uk
15 July 2026
(1)No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if or to the extent that the voucher is used to obtain anything the direct provision of which would fall within—
(a)section 237(1) (parking provision),
(b)section 246 (transport between home and work for disabled employees: general),
(c)section 247 (provision of cars for disabled employees),
(d)section 248 (transport home: late night working and failure of car-sharing arrangements), ...
(e)section 265 (third party entertainment), orF1
(2)No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher evidences the employee’s entitlement to use anything the direct provision of which would fall within—
(a)section 242 (works transport services),
(b)section 243 (support for public bus services), ...
(c)section 244 (cycles and cyclist’s safety equipment), orF2
(d)section 319 (mobile telephones).F2
(3)No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher can only be used to obtain anything the direct provision of which would fall within—
(a)section 245 (travelling and subsistence during public transport strikes),
(b)section 261 (exemption of recreational benefits),
(c)section 264 (annual parties and functions),
(d)section 296 (armed forces' leave travel facilities), ...
(e)section 317 (subsidised meals) , ...F3
(f)section 320A (eye tests and special corrective appliances) ...F3F4
(g)section 320B (health screening and medical check-ups) , orF4F5
(h)section 320D (flu vaccinations).F5
(4)No liability to income tax arises by virtue of Chapter 4 of Part 3 (taxable benefits: vouchers and credit-tokens) in respect of a non-cash voucher if the voucher evidences the employee’s entitlement to a benefit in respect of which no charge arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) because of regulations under section 210 (power to exempt minor benefits).
(5)For the purposes of this section direct provision is taken to fall within a section if it would do so if the employee were not in lower-paid employment as a minister of religion.F6